Grainger wary over housing market

8th Oct 2010 07:12

Residential housing specialist Grainger will see a sharp fall in property sales this year, with the group warning that the near term outlook for the UK housing market and the wider economy will continue to be challenging.Most of the fall is due to the completion and sale last year of a development in North London. Trading profits will be better as margins have improved, Grainger said. Total group property sales will amount to approximately £173m (2009: £220m) in the year to September, with sale of vacant possession houses in the UK little changed at £100m but investment sales down to £40m from £60m.Completed normal sales were some 7.4% above September 2009 vacant possession values. The sales pipeline is £29m, up from £25m a year ago."We remain realistic in our view that the near term outlook for the UK housing market and the wider economy will continue to be challenging. However, we are confident in our ability to achieve outperformance through the proactive management of our portfolios, including pre-sale refurbishment where appropriate," the statement added.